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Why Knowledge Is Power In Business

The saying ‘knowledge is power’ is one that is proffered up plenty, but for those who are just starting out, entrepreneurs who are coming to the idea of business later in life, perhaps, the idea that knowledge is power can be a confusing one. When you think about it carefully though, it does make sense; the more you know, the better you can be at running your business, and the more you can grow that business in the future. But there is more to the idea than this simplistic explanation; read on to find out what we mean.

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Knowledge Removes Fear 

Starting a business is not easy, and it can bring with it a lot of worry, stress, even fear. This is perfectly normal, of course, especially if you’ve never done anything like it before. Most of the time, the excitement of what you are doing will help to counteract at least some of the worries, and with a good plan in place to launch and build your business, that fear will eventually disappear. 

The problem is that the longer that fear stays, the less likely it is you’ll want to build your business as you’ll be happier staying at the level you are. The longer that fear stays, the less likely it will be that you want to try anything new which would have the potential for great success. Fear holds you back, so you’ll want to reduce it or eliminate it as quickly as possible.

Knowledge will allow you to do this. If you are knowledgeable about marketing, you’ll be more confident in creating a marketing campaign that will bring you more customers. If you are knowledgeable about your target market, you’ll be more confident in trying new products that you know they will like. If you are knowledgeable in easy restaurant accounting, then you can see exactly how much profit you’re making and decide on what to do next thanks to those figures. The list is endless, and some online study, a night-class, or simply reading up on the subject can be all it takes to give you the knowledge you’re looking for. 

Knowledge Brings Confidence 

To run a business successfully, you need to be confident in what you are doing. This relates not just to the products and services you are selling, but to the way you are running the business overall as well. 

The more knowledge you have about how your business works, the more motivated you will be to let others know, and the more confidence you will have in what you are saying. Therefore, even if you outsource some elements of your business, or you have employees who carry out some of the tasks, it is wise to learn as much as you can about the jobs that you don’t do as well as the ones you do. When you do that, you can truly position yourself as an expert in your field, showing any potential customers or clients that you know exactly what you are talking about and that you are the one they should come to for advice (and purchases). 

Knowledge Gives You Opportunities 

When you run a business, you must always be on the lookout for opportunities for growth and expansion. Whether it’s a new product to the market that you can start selling before your competitors (perhaps even becoming the exclusive license holder), a business partner who can help boost the business or a new method of marketing that is going to help you find the right people to sell to, you must constantly be aware of what is happening and what new ideas are coming your way. 

This requires knowledge. If you don’t have knowledge, you won’t know which opportunities are going to be right for you and your business. If you don’t have knowledge, you might not even spot those opportunities at all because you just won’t know what to look out for. The more you know, the easier it will be to see new ideas and new paths to take. 

Conclusion 

It’s clear that knowledge is, indeed, power in business. Having knowledge about your own business and about the business world in general is going to help you become much more successful and, ultimately, happier. 

Knowledge is something that can be gained in many forms, and applying to take a degree might work for one person whereas listening to lectures from an expert in the industry might be better for others. Once you know the best way for you to gain knowledge you can really start to make a difference in your life. 

5 Smart Financial Practices That Can Improve Your Business

One crucial thing to observe in managing your company is good financial practices. These can keep your business in healthy financial standing as every penny carefully invested adds to your net worth. Effective financial management involves planning, organizing, and controlling your assets. Economically running your business is even much more critical in this season of the coronavirus crisis, which has seen massive closures across several industries. Here are five smart financial practices that can improve your business.

5 Smart Financial Practices That Can Improve Your Business - calculator and finances image
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  1. Know your day-to-day costs

The fact is that even the most lucrative business brands still face difficulties when they don’t have enough capital to cover their expenses, such as wages and rent. However, it is easier to run a business judiciously when you know your spending limits. Therefore, track your day-to-day costs for a reasonable amount of time and budget accordingly. 

  1. Get insurance for your business

Knowing that uncertainties abide in business, you may need to get insurance cover for your company. Most businesses sign up for insurance schemes because they cover the cost related to property damage and liability claims. And indeed, if you don’t have insurance, you may have to pay out-of-pocket for expensive damages and legal claims that are made against your brand. Insurance can save you time, money and protect your business. Even business owners like plumbers often have to get insurance due to the nature of their work. For example, a customer can claim compensation from a plumber if they cause water damage to a property. Do you need a plumber’s insurance? You can get a quote here and discover the many benefits.

  1. Ensure that customers pay you on time

Companies may run into major financial problems due to late payments from customers. To minimize the risk of non-payment or late payments, you need to clearly state your credit terms and conditions from the beginning. Issue your invoices on time and encourage your debtors to pay you accordingly. You can also look at how to use computerized credit management systems to monitor your customers’ accounts. 

  1. Boost efficiency and control your overheads

How efficient is your business? Boosting your productivity is one way to improve your financial wealth. You can further save money and energy by adopting changes in your business culture. Properly maintain your existing equipment and control your overheads. That’s a straightforward strategy to lower costs and effectively manage your finances. Areas to optimize your energy may include your heating and cooling systems, lighting, and office equipment.

  1. Spend conservatively

It can be tempting for founders to start spending haphazardly as soon as their business begins to earn them a little money. Unfortunately, this kind of behavior is counterproductive as it often leads a business to file for bankruptcy. You should rather try to spend less and save more. Hunt for discounts and find ways to minimize your large expenses. For instance, some utility companies provide rebates for business organizations that invest in energy-efficient equipment. Be smart with money, spend conservatively, and you will be rewarded greatly.

How To Effectively Market Your Business During The Pandemic

The pandemic has hit businesses hard all over the world since coronavirus reared its ugly head, and millions of businesses have been forced to close. Subsequently, millions more jobs have been lost because of this, causing financial despair all over the world. However, some businesses have managed to make it this far, and if you’re one of the lucky, then you’ll be looking for effective ways to ensure that your business survives this pandemic. Here are some tried and tested tips on how to effectively market your business during the pandemic.

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Photo by Oladimeji Ajegbile from Pexels

Understand how to effectively reach your target audience

We all know that there’s a diverse range of people using social media in this day and age, but not everyone does, and it’s important to remember that. If your target audience is the elderly, for example, you may struggle to hit your demographic through social media as much as you’d like. Instead, opt for mediums of marketing such as adverts in magazines, newspapers and television adverts so that you can reach your target more effectively. Conduct research on your target audience so that you can choose the most effective medium of reaching them.

Save time with a marketing agency

Effective marketing takes a lot of time and effort, and if you’re busy with other operations in your business, you simply might not have the time to do it. However, you can use a digital marketing agency such as Herdl for many of your marketing needs such as SEO, website design, hosting, and email marketing. After all, if you’re going to do something right, it’s best left to the professionals! While hiring a marketing agency might be an investment, it’s one you should seriously consider to help improve your business’ visibility.

Take to social media…

Social media is the easiest, fastest, and most cost-effective method of reaching many people in one go. Create stunning graphics and videos that show what your business has to offer, and post them on all of your social media platforms on a regular basis. You should also include a link back to your website so that it’s easy for potential customers to head straight to the product they’re after. You should also do some hashtag research to ensure you’re going to hit the right people with your content. Remember when posting anything on social media to stick to your brand image so that your business becomes recognisable through colour schemes, fonts, imagery and your logo. You’ll thank yourself in the future!

…and through that use influencers to raise brand awareness

Finally, influencers are more powerful than you think, and could be extremely valuable to your business. Reach out to influencers in your industry to see if they’d be willing to review your products or services in return for a review on their social media platforms. Their followers will naturally click through and buy your products! You may have to pay an influencer too, depending on their following, but it’s an investment that will eventually pay for itself through the sales you make.

Parenting 101: Top 7 Ways to Start Saving for Your Child’s Future

Starting saving for your son or daughter’s future may seem overwhelming. However, it doesn’t have to be daunting, especially when you know how to do it. For starters, decide what you want for your children and the goals that you have for their future. You need to know the purpose of saving the money to determine the tips or ways of saving. You can use these saving tips for the college tuition, future medical expenses, general savings, or educational expenses of your child and secure their future.

Parenting 101: Top 7 Ways to Start Saving for Your Child’s Future - coin in piggybank image
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  1. 529 Plans

Also known as a qualified tuition plan, 529 plans enable you to save for your child’s education while taking advantage of tax benefits. You can choose from prepaid tuition plans or educational savings plans, all under the 529 plans. The government sponsors the education savings plan. It allows you to open investment accounts for your kids who can use the funds for fees, board, tuition, or other higher education expenses. The prepaid tuition 529 plans allow parents to prepay costs and tuition at the current prices.

  1. Roth IRA

Opening a Roth IRA in your child’s name is an effective way of saving for his or her future. However, your child must have an income for this saving option. Therefore, it is an ideal way of saving for the future of your teenager. Your child gets tax-free money after retirement. However, Roth IRA is different from other retirement accounts because you can use the funds for qualified college expenses. Your child will not face an early withdrawal penalty, though they have to pay taxes on the earnings.

  1. Trust Funds

Trust funds are not as common, but they are a great way to save money for your child. You can set up a trust fund with any amount, though it doesn’t make much sense if you don’t have a large amount of cash. You should consult a lawyer to draw up the trust documents and appoint a manager. Trust funds are perfect for wealthy families because they provide more control over disbursements and protect children’s assets during a divorce. Factors like how long does a divorce take or whether you have to split assets after the separation don’t affect your child’s trust funds. Trust funds for your child’s future are protected from creditors.

  1. UTMA and UGMA Accounts

Another way of saving for your child’s future is opening a Uniforms Transfer to Minors Act Account. When the child attains the age of 21 or 18, the assets in the account are transferred. Your child then decides on how to use the funds. Therefore, children are not limited to qualified education expenses since they can use funds for discretionary purchases or other living expenses. The best part about UTMA or UGMA is that you can contribute any amount you want towards your child’s future. However, you cannot control how your child uses the funds, and tax benefits are not guaranteed.

  1. A Custodial Account

Opening a custodial account for your son or daughter is ideal for a broader savings purpose. The account doesn’t limit you to college expenses.  You can choose a custodial account to save for your child’s house or business once they become an adult. You fund and manage the account, but your child is the account holder. The pros of starting a custodial account for a child is that it doesn’t have restrictions as long as your child is the beneficiary. A portion of the account’s profits is tax-free, while the rest is taxed at the child’s income tax rate.

  1. Savings Account

Parents can opt for traditional savings accounts to secure their children’s future. However, the interest rates for savings accounts are low, and the interest is also taxed as income. The upside of opening a savings account for a child is that it provides a haven for the funds and secures a child’s future.

  1. Invest Account

You can secure your child’s college education through an investment account. You contribute any amount of money every year, and your child can use the funds for any expenses. That means that children can use the funds for college education of other uses. The money you save is invested in a diversified portfolio of ETFs. The level of risk is also minimal.

Conclusion

You can choose any of the above saving plans for your child’s future at different stages of your working life. The best way to set money aside for saving is to avoid impulse buying since every coin counts. Ensure that you educate your children about the importance of savings to secure their future.